Nickel futures on the London Metal Exchange (LME) increased to a three-month high, closing at US$18,737 per ton yesterday (April 23). This performance pushed the year-to-date increase to 12.56%. In spite of a strengthening US dollar driven by geopolitical instability, nickel prices have gained momentum.

Market participants said this upward movement was due to tighter mining regulations in Indonesia. Projections from the International Nickel Study Group (INSG) indicate the global nickel market will move from a 283,000-ton surplus in 2025 to a 32,000-ton deficit this year. Furthermore, declining LME nickel inventories, down by 3,978 tons so far in April to the current 277,548 tons, support this trend.

Although stainless steel demand remains lackluster, supply disruptions and rising costs are keeping buyers in control, maintaining the positive price trend.